Federal Reserve Bank of New York President William Dudley was investigated and cleared by an outside law firm for failing to disclose his half-sister’s position as an executive at Wells Fargo & Co., according to an annual disclosure filing.
Bloomberg News reports that the omission was deemed to be unintentional, according to the documents. Dudley notified compliance officials and board members at the New York Fed when he realized his error in April, who in turn brought in the law firm to conduct an independent investigation, according to a note with the filing, which was posted on the district bank’s website.
Attorneys at Jenner & Block LLP in New York reviewed thousands of documents including personal emails and text messages and interviewed more than 20 people inside and outside the New York Fed as part of its investigation, according to the firm’s report, which was also attached to the filing.
The attorneys concluded that "Mr. Dudley’s error was inadvertent," and that while it violated the New York Fed’s own code of conduct, it did not violate federal statutes.
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